I restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees.

(1) Federally assisted construction contract means any agreement or modification thereof between any applicant and any person for construction work which is paid for in whole or in part with funds obtained from the Agency or borrowed on the credit of the Agency pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Agency for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work.

(m) Government means the Government of the United States of America. (n) Government contract means any agreement or modification thereof between any contracting agency and any person for the furnishing of supplies or services or for the use of real or personal property, including lease arrangements. The term services, as used in this definition includes, but is not limited to, the following services: Utility, construction, transportation, research, insurance, and fund depository. The term government contract does not include (1) agreements in which the parties stand in the relationship of employer and employee, and (2) federally assisted construction contracts.

(0) Hearing officer means the individual or board of individuals designated to conduct hearings.

(p) Modification means any alteration in the terms and conditions of a contract, including supplemental agreements, amendments and extensions.

(q) Order means Parts II, III, and IV of Executive Order 11246, dated September 24, 1965 (30 FR 12319), and any Executive Order amending or superseding such orders.

(r) Person means any natural person, corporation, partnership, unincorpo

rated association, State or local government, and any agency, instrumentality, or subdivision of such a government.

(s) Prime contractor means any person holding a contract, and for the purposes of subpart B (General Enforcement, Compliance Review, and Complaint Procedure) of the rules, regulations, and relevant orders of the Secretary of Labor, any person who has held a contract subject to the order.

(t) Recruiting and training agency means any person who refers workers to any contractor or subcontractor, or who provides or supervises apprenticeship or training for employment by any contractor or subcontractor.

(u) Rules, regulations, and relevant orders of the Secretary of Labor used in both paragraph (4) of the equal opportunity clause and elsewhere herein means rules, regulations, and relevant orders of the Secretary of Labor or his designee issued pursuant to the Order.

(v) Site of construction means the general physical location of any building, highway, or other change or improvement to real property which is undergoing construction, rehabilitation, alteration, conversion, extension, demolition, and repair and any temporary location or facility at which a contractor, subcontractor, or other participating party meets a demand or performs a function relating to the contract or subcontract.

(w) Subcontract means any agreement or arrangement between a contractor and any person (in which the parties do not stand in the relationship of any employer and an employee):

(1) For the furnishing of supplies or services or for the use of real or personal property, including lease arrangements, which, in whole or in part, is necessary to the performance of any one or more contracts; or

(2) Under which any portion of the contractor's obligation under any one or more contracts is performed, undertaken or assumed.

(x) Subcontractor means any person holding a subcontract and, for the purposes of subpart B (General Enforcement; Compliance Review; and Complaint Procedure) of the rules, regula

tions, and relevant orders of the Secretary of Labor any person who had held a subcontract subject to the order. The term First-tier subcontractor refers to a subcontractor holding a subcontract with a prime contractor.

(y) United States as used herein shall include the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Panama Canal Zone, and the possessions of the United States.

(z) Minority group as used herein shall include, where appropriate, female employees and prospective female employees.

§ 8.3 Responsibilities.

(a) General. The Environmental Protection Agency is primarily responsible for implementing the requirements of the order, and all rules, regulations, and orders issued pursuant thereto for all contracts for which it is the Compliance Agency.

(b) Contract Compliance Officer (CCO). The Director of the Office of Civil Rights and Urban Affairs has been designated as the Contract Compliance Officer (CCO), and is responsible for developing and administering the Agency's program under the order. (c) Director, Compliance Division. The Director of the Compliance Division (ADCCO) has been designated to assist the Contract Compliance Officer in the performance of his duties. He is authorized to exercise the authority of the Contract Compliance Officer.

(d) Deputy Contract Compliance Officer (DCCO). Each Regional Director of Civil Rights and Urban Affairs has been designated by the Contract Compliance Officer as Deputy Contract Compliance Officer (DCCO) for the Region in which he serves. Deputy Contract Compliance Officers are responsible for field administration of programs of contract compliance in conformity with directives and guidelines promulgated by the Contract Compliance Officer.

(e) Heads of program areas. Assistant Administrators and Regional Administrators who are authorized to extend Federal financial assistance which involves construction work shall be responsible for effectuating the

order, rules, regulations, and relevan: orders of the Secretary of Labor OFCC directives this part, directives of the Agency, and all other rules, reg ulations, and orders issued pursuan: thereto as they relate to construction contracts financially assisted by the Agency.

§ 8.4 Equal opportunity clause.

(a) Government contracts. Except a otherwise provided, the following equal opportunity clause contained section 202 of the Order shall be in cluded in each Government contrac entered into by the Agency (and modi fication thereof if not included in th original contract):

During the performance of this contrac the contractor agrees as follows:

(1) The contractor will not discrimina: against any employee or applicant for e ployment because of race, color, religi sex, or national origin. The contractor w take affirmative action to ensure that appl cants are employed, and that employees a treated during employment, without rega: to their race, color, religion, sex, or nation origin. Such action shall include, but not limited to, the following: Employment, u grading, demotion, or transfer; recruitme or recruitment advertising; layoff or term nation; rates of pay or other forms of cor pensation; and selection for training, incl ing apprenticeship. The contractor agrees post in conspicuous places, available to e ployees and applicants for employment, n tices to be provided by the contracting of cer setting forth the provisions of this equ opportunity clause.

(2) The contractor will, in all solicitation or advertisements for employees placed or on behalf of the contractor, state that qualified applicants will receive conside ation for employment without regard race, color, religion, sex, or national orig

(3) The contractor will send to each lab union or representative of workers w which he has a collective bargaining agre ment or other contract, or understanding notice, to be provided by the agency co tracting officer, advising the labor union workers' representative of the contracto commitments under this equal opportun clause, and shall post copies of the notice conspicuous places available to employe and applicants for employment.

(4) The contractor will comply with provisions of Executive Order No. 11246 September 24, 1965, and of the rules, regul tions, and relevant orders of the Secreta of Labor.

(5) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(6) In the event of the contractor's noncompliance with the equal opportunity clause of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended, in whole or in part, and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

(7) The contractor will include the provisions of paragraph (a) (1) through (7) of this section in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

(b) Federally assisted construction contracts. Except as otherwise provided, the agency shall include or require the inclusion of the following language as a condition of any grant, contract, loan, insurance, or guarantee involving federally assisted construction which it administers as Administering Agency and which is not exempt from the requirements of the equal opportunity clause:

The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in

part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan, insurance, or guarantee or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the following equal opportunity clause:

During the performance of this contract, the contractor agrees as follows:

(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this equal opportunity (federally assisted construction) clause.

(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers, with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(4) The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(5) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(6) In the event of the contractor's noncompliance with the equal opportunity (federally assisted construction) clause of this contract or with any of the said rules, regulations, or orders, this contract may be can

celed, terminated, or suspended, in whole or in part, and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as provided by law.

(7) The contractor will include this equal opportunity (federally assisted construction) clause in every subcontract or purchase order unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor, as a result of such direction by the administering agency the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the Agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor; that it will furnish the Agency and the Secretary of Labor such information as they may require for the supervision of such compliance; and that it will otherwise assist the Agency in the discharge of its primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to the Order with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Order and will carry out such sanctions and penalties for violation of the equal opportunity clause, as may be imposed upon contractors and subcontractors by the Agency or the

Secretary of Labor pursuant to Part II, Subpart D of the Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the Agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

(c) Subcontracts. Each nonexempt prime contractor or subcontractor shall include the equal opportunity clause in each of its nonexempt subcontracts.

(d) Incorporation by reference. The equal opportunity clause may be incorporated by reference in Government bills of lading, transportation requests, contracts for deposit of Government funds, contracts for issuing and paying U.S. savings bonds and notes, contracts and subcontracts less than $50,000 and such other contracts as the Director may designate.

(e) Incorporation by operation of the Order and Agency regulations. By operation of the Order, and these regulations, the equal opportunity clause shall be considered to be a part of every contract and subcontract required by either the Order, the rules, regulations and relevant orders of the Secretary of Labor or these regulations to include such a clause whether or not it is physically incorporated in such contracts. The clause is hereby made a part of every nonexempt contract where there is no written contract between the Agency and the contractor.

(f) Adaptation of language. Such necessary changes in language may be made in the equal opportunity clauses as shall be appropriate to identify the parties and their undertakings.

(2) Contracts and subcontracts for indefinite quantities. With respect to contracts and subcontracts for indefinite quantities (including, but not limited to, open-end contracts, requirement-type contracts, Federal Supply Schedule contracts, call-type contracts, and purchase notice agreements), the equal opportunity clause shall be included unless the purchaser has reason to believe that the amount to be ordered in any year under such contract will not exceed $10,000. The applicability of the equal opportunity clause shall be determined by the purchaser at the time of award for the first year, and annually thereafter for succeeding years, if any. Notwithstanding the above, the equal opportunity clause shall be applied to such contract whenever the amount of a single order exceeds $10,000. Once the equal opportunity clause is determined to be applicable, the contract shall continue to be subject to such clause for its duration, regardless of the amounts ordered or reasonably expected to be ordered in any year.

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(3) Work outside the United States. Contracts and subcontracts exempt from the requirements of the equal opportunity clause with regard to work performed outside the United States by employees who were not recruited within the United States.

(4) Contracts with State or local governments. The requirements of the equal opportunity clause in any contract or subcontract with a State or local government (or any agency, instrumentality or subdivision thereof) shall not be applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract or subcontract. In addition, State and local governments are exempt from

the requirements of filing the annual compliance report provided for by § 8.11(a) and maintaining a written affirmative action compliance program prescribed in §§ 8.7 and 8.8.

(b) Specific contracts and facilities not connected with contracts. The equal opportunity clause will not be required to be included in any contract or subcontract exempted by the Director under the provisions of 41 CFR 601.5(b) (1) or (2) provided such exemption has not been withdrawn under the provisions of 41 CFR 60-1.5(d).

(c) National security. Any requirement set forth in the regulations in this part shall not apply to any contract or subcontract whenever the Administrator determines that such contract or subcontract is essential to the national security and that its award without complying with such requirement is necessary to the national security. Upon making such a determination, the Administrator will notify the Director in writing within 30 days.

§ 8.6 Pre-bid requirements and confer

ences.

(a) Nonconstruction contracts of $1 million or more. The following notice shall be included in the invitation for bids, or request for proposals for each nonconstruction contract (advertised or negotiated) which may result in an award of $1 million or more:

PREAWARD EQUAL OPPORTUNITY COMPLIANCE REVIEWS

Where the bid (or offer) of the apparent low responsible bidder (or offeror) is in the amount of $1 million or more, the bidder (or offeror) and his known first-tier subcontractors which will be awarded subcontracts of $1 million or more will be subject to full, preaward equal opportunity compliance reviews before the award of the contract for the purpose of determining whether the bidder (or offeror) and his subcontractors are able to comply with the provisions of the equal opportunity clause.

Preaward compliance reviews may be conducted for any nonexempt nonconstruction contract or subcontract if, on the basis of complaint, past performance, investigation, or otherwise, the Agency believes that a prospective contractor or subcontractor is unable or unwilling to comply with the re